A handful of tech companies are reportedly lining up to buy Twitter.
According to various media reports, Google, Microsoft, Verizon and Salesforce, have all expressed interest in buying Twitter.
The CBNC report indicated Twitter has “received expressions of interest” from a number of parties, Google and Salesforce chief among them, but has not yet received a formal bid — although one could soon be made. Tech Crunch, however, indicated Microsoft was also a strong contender as is Verizon. The companies are interested in Twitter for its reams of data it generates on a daily basis.
None of the companies would confirm the rumors, but Twitter’s stock is up more than 20 percent, nonetheless.
CNBC also reported that Twitter’s board of directors seems to “be amenable to a sale.”
Talk of a possible sale should come as no surprise to anyone. Twitter has remained stagnant both in user growth and profits for some time. In its last quarter, Twitter admitted in its second quarter results report that it is not getting a big enough slice of advertisers’ dollars.
“First, there is increased competition for social marketing budgets,” Twitter said in its latest letter to shareholders. “We’re still priced at a premium CPE [cost per engagement] relative to others.”
In other words, platforms like Facebook and Instagram are attracting marketers’ advertising dollars over Twitter because they have more users and cost less.
Twitter recorded revenue of $602 million in its last quarter, but it was still the slowest revenue growth quarter-to-quarter since Twitter went public in November 2013. User growth — or the lack of it — also continues to be a drag on the microblogging site. Twitter reported an unimpressive one percent rise in the number of monthly active users in the second quarter from 310 million to 313 million.
Given its struggles to grow, combined with the value of its data it would not be in the least surprising to hear that Twitter was being sold. It’s just a matter of who the highest bidder will be.
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